GDP growth slides; policy rates raised

PHILIPPINES
- In Brief
09 Aug 2018
by Romeo Bernardo

After adjusting down its 1Q18 economic growth estimate from 6.8% to 6.6%, government announced today that 2Q18 GDP growth slipped to 6%, far below the median 6.8% analysts’ forecast. While the headline figure is disappointing, what is striking about the 2Q18 performance is the strength of domestic demand. The combined spending for consumption and investments by households, firms and government grew by over 10% in 2Q18, compared with 8.3% in 1Q18 and 6.6% in the comparable period last year. However, higher demand was met by higher imports, resulting in a doubling of the trade gap, and hence ...